Grain prices moved higher on Monday and continued to consolidate at elevated levels on Tuesday. The CFTC reported that money managers cut their net short position in nearly all grains which led to a further short squeeze higher. Concerns about dry weather in Argentina and the southern Plains helped spark the change, though a recent USDA report suggested to some that ample domestic supplies of wheat and soybeans would continue to weigh on prices. Corn prices closed on their highs Monday and are poised to test resistance.

Grain prices gained some traction on Monday following reports on Friday from the CFTC that said that hedge funds slashed their bets that soybean prices and corn. The CFTC reported that money managers cut their net short position in soybean futures and options by over 50% to a little under 10,000 contracts as of Tuesday February 6, 2018. China’s corn imports are expected to be higher this season due to a rising pip population and a reduction in sorghum following the government’s decision to investigate imports, says the China Ministry of Agriculture.

Soybeans were trading under pressure following the USDA’s report that showed a likely increase in ending stocks due to a decrease in exports for the balance of the 2017/2018 season. The USDA raised its 2017/18 US soybean carryout forecast by 60 million bushels to 530 million its monthly supply and demand projections. The increase in USDA’s carryout was larger than market expectations, which projected an increase of just 16 million bushels.

Chicago wheat futures turned lower on Thursday, retreating from a six-month peak as a short-covering rally ran out of steam, while soybean and corn prices edged higher ahead of a U.S. Department of Agriculture report due later in the day. Dealers said the recent run-up in wheat prices had also been driven by U.S. crop concerns, though overall global supplies remained ample. The most activce Chicago Board of Trade wheat contract was 0.8 percent down at $4.57 a bushel at 1200 GMT, having earlier marked its highest since Aug. 8 at $4.64-1/2.

If the average is realized, it would represent a 16-million-bushel increase from USDA’s January projection of 470 million bushels. The anticipated increase in US ending stocks is likely being driven by a reduction in USDA’s projection of 2017/18 US soybean exports. USDA’s January projection of 2.16 billion bushels was reduced 65 million bushels from its December forecast, but slower-than-expected exports over the last month could push an additional reduction in its export forecast.

Grain prices initially moved lower but rebounded as the dollar gained back some of its gains. The latest USDA soybean export inspections came in ahead of analyst expectations, providing some relief after a weak open to the trading week, with corn about in-line and wheat shy of the average forecast. The 1.3M tons of beans was well ahead of even the most bullish forecast and helped halve earlier losses.Corn Prices

Grain prices continued to drop in early North American trade on Monday as risk of perpetuated throughout the market. Equity prices are tumbling, and the dollar is gaining traction weighing on grain prices. Hedge funds continue to reverse short positions in futures and options, which was likely the catalyst for the rise.

Grain prices edged lower in early North American trade on Friday. Corn prices are now consolidated and forming a bull flag pattern which is a pause that eventually refreshes higher. Corn is hovering near the 50% Fibonacci retracement level that comes from the drop from the highs last July near 3.93, to the lows seen in September near 3.28, which comes in near 3.61. Prices could retrace back to their breakout level which is a downward sloping trend line which was former resistance that is now support near 3.55 per bushel.

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil futures rose over 1 percent in their second half of trading on ...

CHICAGO/CALGARY, Alberta (Reuters) - Top U.S. grain merchant Archer Daniels Midland Co (ADM.N) has proposed a takeover of Bunge Ltd (BG.N), according to a person familiar with the approach, which could set up a bidding war with Swiss-based rival Glencore Plc (GLEN.L). Thin margins have squeezed core commodity trading operations, including those of ADM, Bunge, Cargill Inc [CARG.UL] and Louis Dreyfus Co [AKIRAU.UL], which together are known as the "ABCDs" and dominate the industry. Glencore last year sought a tie-up with Bunge in what was viewed as a start of a wave of mergers and acquisitions in the industry.

China's appetite for palm oil heading into the Lunar New Year holiday may be lower than expected as plentiful supplies of rival edible oils curb consumption ahead of its largest festive celebration, traders and analysts said. Palm oil traders had been counting on demand from China, the world's second-biggest palm oil buyer, to increase and support prices that have slumped 14 percent since November on rising stockpiles in No. 2 producer Malaysia.

India's soymeal exports could fall by at least a fifth in 2017/18 from a year ago as a rally in local soybean prices and a firmer rupee make shipments from the south Asian country pricey for overseas buyers, industry officials said. Lower exports from India will help major growers like the United States, Argentina and Brazil increase sales of the animal feed to Asian buyers like Bangladesh, Vietnam and Japan. The price difference is huge between Indian and the U.S. or South American origin crop," Manoj Agrawal, managing director at exporter Maharashtra Oil Extractions Pvt Ltd told Reuters.

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil edged up on Friday evening for its first gain in four sessions ...

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil futures fell to their lowest in three months on Monday evening ...

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil futures fell on Friday, in line for their sixth decline in seven ...

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil futures jumped to a one week top on Wednesday evening, charting ...

The head of the Environmental Protection Agency is looking to make peace on biofuels standards with a group of senators from corn-growing states who could upend President Donald Trump's nominees for key ...

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets. FUNDAMENTALS * Malaysian palm oil futures traded higher on Friday ahead of the release of official ...